Video conferencing platform Zoom Communications Q3 revenue beats estimates

Zoom Communications

24/11/2025 21:13

Overview

Zoom Q3 revenue grows 4.4% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats analyst expectations

Company increased stock repurchase authorization by $1 bln

Outlook

Zoom expects Q4 revenue between $1.230 bln and $1.235 bln

Company forecasts full-year revenue between $4.852 bln and $4.857 bln

Zoom anticipates full-year free cash flow between $1.860 bln and $1.880 bln

Result Drivers

ENTERPRISE REVENUE - Enterprise revenue increased 6.1% yr/yr, contributing to overall revenue growth

AI ADOPTION - Significant adoption of AI Companion 3.0 and AI-first Customer Experience suite driving customer engagement

STRONG CASH FLOW - Operating cash flow increased 30.2% yr/yr, reflecting disciplined operational approach

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.23 bln
$1.21 bln (25 Analysts)
Q3 Adjusted EPS
Beat
$1.52
$1.44 (25 Analysts)
Q3 EPS
$2.01
Q3 Adjusted operating Margin
41.20%
Q3 Operating Margin
25.20%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Zoom Communications Inc is $94.50, about 16.8% above its November 21 closing price of $78.63

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX863FQX

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)